Privately-held, private equity-backed midstreamer Outrigger Energy II LLC said this morning it’s signed a long-term gas gathering/processing agreement with XTO Energy to service XTO’s Williams County, North Dakota, production, Kallanish Energy reports.
The gathering system, Outrigger’s entry into the Williston, will include a 70-mile, 20- and 24-inch rich gas pipeline originating in eastern Williams County and terminating at a new 250 million cubic feet per day (Mmcf/d) gas processing plant located west of Williston, North Dakota.
Plans are also underway for a plant expansion of up to an additional 200 Mmcf/d, for total gas processing capacity of 450 Mmcf/d.
“Routing of the gathering line will provide other Williston Basin operators access to much needed gathering and cryogenic processing capacity,” said Dave Keanini, Outrigger’s CEO.
Keanini added the additional midstream capacity for gas production north of the Missouri River helps North Dakota in its efforts to minimize gas flaring in the Williston Basin.
Outrigger will construct, own and operate the cryogenic processing plant and gathering system. The plant will feature ethane recovery and rejection capabilities that will provide direct market access to the Northern Border Pipeline system for residue gas, and the ONEOK natural gas liquids pipeline system.
Outrigger Energy currently operates in the DJ Basin of Colorado and Wyoming. The midstreamer is supported by equity commitments from NGP Energy Capital Management and an entity affiliated with private investor Brion G. Wise, former chairman of Western Gas Resources.
This post appeared first on Kallanish Energy News.